The ratings on Vail Resorts Inc. reflect the company's good operating performance, diversified revenue mix, and 9% share of a fragmented U.S. ski market and more than 40% share of the Colorado market, offset by limited geography and the risks associated with operating in a highly seasonal and cyclical industry. Financial risk is fairly high, as weather patterns can cause material cash flow swings. A weaker-than-expected operating environment and challenging business fundamentals are expected to continue as a result of material declines in leisure travel and economic uncertainty. Still, favorable skiing conditions and an increasing focus on "drive-to" visitors and controlling costs should benefit near-term financial performance. Longer-term visibility is poor, as skier visitation trends--a key driver of profitability--could be
